IMPORTANT CREDIT INFORMATION Fico score rating is composed of 5 components: #1. Your buying and bill Paying habits 35% #2. What you Owe vs. Available 30% #3. Length of credit history 15% #4. Types of credit used/ credit mix 10% #5. Applying for New credit 10% FICO score is determined: 35 percent Payment History: Having a long history making of payments on time and no missed payments on all credit accounts is one of the most important items lenders look for. 30 percent Amount Owed: This measures the amount you owe relative to the total amount of credit available. Someone closer to maxing out all their credit limits is deemed to be a higher risk of late payments in the future and this can lower their credit score. 15 percent Length of Credit History: In general, a credit report containing a list of accounts opened for a long time will help your credit score. The score considers your oldest account and the average age of all accounts. 10 percent New Credit: Opening several new credit accounts in a short period of time can lower your credit score. Also multiple credit report inquiries can represent a greater risk, but this does NOT include any requests made by you, an employer or by a lender who does so when sending you an unsolicited, pre-approved credit offer. Also, to compensate for rate shopping, the score counts multiple inquiries in any 14-day period as just one inquiry. 10 percent Types of Credit in Use: Your mix of credit cards, retail accounts, finance company loans and mortgage loans is considered. #GetYourCreditFixed
Posted on: Wed, 05 Mar 2014 00:36:19 +0000
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